Republic of the Philippines
Department of Finance
Securities and Exchange Commission
SEC Bulg. EDSA, Greenhits, Mandaluyong City
SEC Memorandum Circular No. 7
Series of 2013
To LENDING COMPANIES
Subject. :- SINGLE BORROWER LIMIT (SBL) AND CREDIT LIMIT ON
DIRECTORS, OFFICERS, STOCKHOLDERS AND RELATED
INTERESTS (DOSRI)
‘The Commission En Banc, in its meeting on 08 April 2013, approved the amendment
of Rule 3 of the Implementing Rules and Regulations of the Lending Company Act of 2007
(Republic Act No. 9474) by requiring lending companies to comply with the Single Borrower
imit (SBL) and credit limit on directors, officers, stockholders and related interests
(DOSRI). Accordingly, the said Rule is hereby amended as follows:
“RULE 3. Requirements for Organization
(a) Form of Organization
(1) The total credit that a lending company may extend 10 its directors, officers and
stockholders shall not exceed fifteen percent (15%) of its networth. For this purpose,
loans and other credit extended by a lending company to the following related interests
shall be deemed extended to its directors. officers and stockholders:
4. Spouse or relatives within the first degree of consanguinity or affinity, or relatives by
legal adoption, of the officer, director or stockholder of the lending company;
ii, Partnership in which a director or officer or stockholder of the lending company, or
their spouse or relatives referred to in the preceding item (item i) is a general
partner:
4, Corporations where a director or officer or stockholder of the lending company, or
their spouse or relatives referred to in item i above is also a director or officer of the
corporation;
iv, Corporations where more than twenty percent (20%) of its subscribed capital stock is
owned by a director or officer or stockholder of the lending company or their spouse
or relatives referred to in item i above:¥. Corporations wholly or majority-owned or controlled by entities mentioned in items
4i, iii and iv above.
() The total credit that a lending company may extend to any person, company, corporation
or firm shall not exceed thirty percent (30%) of its networth.”
The penalties for violations of the aforesaid requirements shall be as provided below:
Violation 1 Offense 2" Offense 3 Offense 4 Offense
Total credit
extended tothe | P10,000.00 plus | P10,000.00 plus | P10,000.00 | Suspension and/or
company’s P100.00 per | P200.00 per day | plus P300.00| revocation of,
directors, day per day Certificate of
officers, Authority after
stockholders. and due
related interests notice/proceedings
(DosR)
exceeds 15% of
the company's
networth
Total credit
extended to any | P10,000.00 plus | P10,000.00 plus | P10,000.00 —_| Suspension and/or
person, whether | P100.00 per | P200.00 per day | plus P300.00 | revocation of
individual, day per day Cerificate of
partnership or Authority after
corporation due +
(Single notice/proceedings
Borrower Limit)
exceeds 30% of
the company’s !
networth
This Memorandum Circular shail be published in two (2) newspapers of general
sulation in the Philippines and shall take effect fifteen (15) days after the date of such
publication,
Issued this 8" of April 2013, Mandaluyong City, Philippines. :
For the Commission:
2
TERES{TA J. HERBOSA
Chairperson 1